(a) A dealer who enters into a writtenretail agreement with a supplier to maintain a stock of motorcycles, off-road vehicles, or related parts and attachments has the following rights to payment upon repurchase, at the option of the dealer, if the retail agreement is terminated:
Terms Used In Tennessee Code 47-25-1906
Current net price: means the price listed in the supplier's price list or catalogue in effect at the time the contract is canceled or discontinued, less any applicable trade and cash discounts. See Tennessee Code 47-25-1902
Dealer: means any person engaged in the business of selling and retailing inventory, who enters into a retail agreement, and who, under the terms of the agreement receives inventory from the supplier. See Tennessee Code 47-25-1902
Inventory: means motorcycles, off-road vehicles, attachments and repair parts. See Tennessee Code 47-25-1902
Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
Net cost: means the price the dealer actually paid to the supplier for the inventory, less any applicable trade, volume, or cash bonus discounts, plus freight and set-up expense. See Tennessee Code 47-25-1902
Retail agreement: means an agreement, including a franchise agreement that meets the requirements of a retail agreement, whether express, implied, oral, or written, between two (2) or more persons:(A) By which a person receives the right to:(i) Sell or lease inventory or services at retail or wholesale. See Tennessee Code 47-25-1902
written: includes printing, typewriting, engraving, lithography, and any other mode of representing words and letters. See Tennessee Code 1-3-105
(1) The supplier shall repurchase, at one hundred percent (100%) of the current net price, all new, unsold, undamaged and complete motorcycles, off-road vehicles and attachments;(2) The supplier shall repurchase, at ninety percent (90%) of the current net price, all new, unused and undamaged and superseded repair parts;(3) The supplier shall repurchase, at ten percent (10%) of the current net price, all new, unused and undamaged repair parts returned to cover the cost of handling, packing and loading. The supplier shall have the option of performing the handling, packing and loading in lieu of paying the ten percent (10%) for these services;(4) The supplier shall purchase, at its amortized value, any specific data processing hardware and software and telecommunications equipment that the supplier required the dealer to purchase within the past five (5) years; and(5) The supplier shall repurchase, at one hundred percent (100%) of the net cost, specialized repair tools purchased in the previous three (3) years and, at seventy-five percent (75%) of the net cost, specialized repair tools purchased in the previous four (4) through six (6) years and, at fifty percent (50%) of the net cost, specialized repair tools purchased more than six (6) years previous pursuant to the requirements of the supplier and held by the dealer on the date of termination. The specialized repair tools must be unique to the supplier’s product line and must be in complete and resalable condition.(b) Motorcycles, off-road vehicles and attachments used in demonstrations, including inventory leased primarily for demonstration or lease, shall also be subject to repurchase under this part at its agreed depreciated value; provided, that the inventory is in new condition and has not been abused.
